ABC Restaurants Pty Ltd started the year with retained earnings of $20,000 credit. During the year the business earned $100,000 in income and incurred $55,000 in expenses. Dividends paid were $10,000.

The closing balance of retained earnings at the end of the year was:

Select one:

a. $65,000

b. $55,000

c. $45,000

d. $35,000

e. None of the above